Decision to Eliminate Customs Duty on Extra Long Staple Cotton

09-Feb-2026 08:39 PM

Mumbai. The Government of India has decided to include extra-long staple (ELS) cotton in the First Schedule, effectively reducing the customs duty on its import to zero percent.

This is expected to significantly help Indian exporters increase the export of high-value textile products and garments.

In the Union Budget for the financial year 2026-27, the government announced the inclusion of Extra Long Staple (ELS) cotton in the schedule of zero-duty products.

The Chairman of a leading industry-trade body, the Cotton Association of India (CAI), stated that the Union Budget has been prepared as a forward-looking blueprint aimed at establishing India as a global manufacturing hub and laying the foundation for it to become the world's third-largest economy.

In a significant change to the customs schedule, ELS cotton has been included in the First Schedule. This will provide the Indian textile industry with the opportunity to import and utilize ELS cotton duty-free at a lower cost, thereby increasing the competitiveness of high-quality garments made from it in the international market.

It is noteworthy that India has limited production of this high-quality cotton, which is insufficient to meet the domestic industry's demand and needs, thus necessitating imports from abroad.

It is worth noting that India imports 5-7 lakh bales of ELS cotton annually, primarily from the United States and Egypt.